Choosing a Bookkeeper

It is important that the bookkeeper can demonstrate accounting knowledge and skill and not simply have learnt through using software. A good bookkeeper must know the difference between cash and accrual accounting and can demonstrate sound knowledge of GST, tax code usage and the treatment of financial transactions.

Good bookkeepers should be a member of an accredited industry body and be able to demonstrate commitment to continuous development to ensure they are up to date in their knowledge and skills.

Good bookkeepers will have appropriate insurances (eg, professional indemnity) and conduct themselves as a professional.

Good bookkeepers will “park” transactions in the Suspence or Query Account until sufficient paperwork or information on the treatment of the transaction is obtained to then post to the correct and appropriate accounts.

Good bookkeepers will recommend good financial processes and systems to ensure sound financial controls. Further, they will use audit controls, back-ups and reconciliation reports to ensure control and accuracy of the accounts.

Caution needs to be had if considering providing a bookkeeper with access to pay bills from a bank account. Good bookkeepers will ensure tight controls in systems and processes to ensure protection for both the business owner and the bookkeeper to eliminate any chance of mis-use of the bank account.

Good bookkeepers will have the skill and knowledge to develop financial reports required by the business and assist with cashflow and budgets.

Good bookkeepers will be proficient in accounting software (eg, MYOB) and be able to use it efficiently and effectively for your business.

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When Choosing a Bookkeeper

Does the bookkeeper have accounting knowledge and how did they get it?

Does the bookkeeper have experience and how did they get it?

Can they demonstrate commitment to continuous development to ensure they are up to date in their knowledge and skills.

Are they members of an accredited industry body (eg, CPA, The Institute of Certified Bookkeepers)?

Do they have appropriate insurance (eg, professional indemnity)?

Do they know the difference betweencash and accrual accounting?

Are they a Registered BAS Agent?

Do they know what the various tax codes are and when to use them?

Do they know how to treat capital, depreciation and other different types of transactions?

Do they use the Suspence or Query Account regularly and how often is it cleared?

Do they suggest and recommend changes to financial processes and systems to ensure better financial controls.